Willingness to Pay for Alternative Energies in Uganda: Energy Needs and Policy Instruments towards Zero Deforestation 2030 and Climate Change

Abstract

With climate change advancing, the world’s target of zero deforestation by 2030 seems like a dream in Africa’s developing nations. This is because over 90% of households depend on wood fuels for their energy needs. Over the years, the decrease in natural rainforest area has been attributed to deforestation and forest degradation due to human activities, including the huge dependence on wood fuel for energy. Policies on clean energy production and imports to adapt to environmental and climatic implications are long overdue. This study hypothesized that Ugandans are willing to pay for alternative energies to conserve natural forests. The study aimed to examine the energy situation in Uganda and the willingness to pay for alternative energies (WTPEA) to reduce deforestation. This study conducted a dichotomous choice (DC) questionnaire for the willingness to pay for energy alternatives (WTPEA). This research used the questionnaire to collect the data, and a total of 1200 responses were collected and analyzed. The survey results showed that 80% of the respondents demonstrated a willingness to pay on average. The average willingness to pay amount (WTPA) was USD 15, and the median WTP was USD 10. Most of the respondents preferred gas and electricity for household cooking. The logistic regression results showed that their socioeconomic characteristics did not impact their hypothetical WTPEA. The willingness to pay for forest conservation (WTPFC) and the knowledge of forest functions and services were found to positively and significantly impact the WTPEA. The majority of the socioeconomic variables were found to very significantly influence the WTP amount. Furthermore, the WTPFC and charcoal fuel use were found to have a positive and very significant effect on the WTP for alternative energies. The Government of Uganda ought to employ policy tools to boost the imports and production of alternative energies in Uganda to save the depleting forests. This would promote and improve the conservation of virgin tropical rainforests, which are on the brink of extinction, and mitigate the dire climatic conditions.